A proposed amendment would cap all local Hotel-Motel taxes at 10% and mandate that all new revenue from future increases must be spent on the promotion of tourism and tourism development. The amendment narrowly defines "tourism" as the business or industry of providing information, accommodations, transportation, entertainment, and other services to tourists. "Tourism development" means the planning and conducting of programs of information and publicity designed to attract to a municipality tourists, visitors, and other interested persons from outside the area and to encourage and coordinate the efforts of other public and private organizations or groups of citizens to publicize the facilities and attractions of the area. It also includes the acquisition, construction, financing and retirement of debt in any tourism development zone, and remodeling of facilities used in the attraction and promotion of tourist, entertainment, sporting events, and convention and event centers.

As amended in the Senate, establishes, for any municipality authorized by private act or under general law of this state to levy by ordinance a tax on the privilege of occupancy in a hotel, when the existing rate of such tax on the effective date of this act is less than the maximum amount that the municipality may levy under such private act or general law, that any increase in such tax by ordinance on and after the effective date of this act is expended on the promotion of tourism or tourism development. The House is expected to adopt the Senate amendment.